2 years out-Good credit scores-New mortgage :)

[spidge]

Nice deal. Glad to hear it.

[LadyInTheRed]

Congratulations holycowe!

[holycowe]

Quick update:
Took us total 3-4 weeks total since FHA mortgage application.

3.5% down
Locked in @ 4.25%

Seller gave us up to 3% for closing cost, 1 year of home warranty.
My agent will give me back 1%, my lender give me prepay money at closing and will give me back home appraisal fee plus 1%

Signed final doc. on 5-8, got the key on 5-9

My agent and my LO is my sister in law

[holycowe]

Yes, as far as I know. When you have enough 20% equity, you have to do the refinance in order to get rid off pmi

[LadyInTheRed]

I watched my folks writing a check for $14,000 for a new roof and thousands more for a furnace. Its helps to have $20,000 plus stashed in a checking at a given time. When they first moved in to their current home nearly a decade a go, their water pipe under the front lawn leading to the road cracked spewing water while away on vacation. It cost $5000 to repair and a thousand more for the water usage bill.

Yikes, $5,000!? That must have been a much longer water main than mine. My house is pretty close to the front of the property. I'm glad we discovered the slow leak before it became a gushing emergency. When the plumber pulled out the old pipe, parts of it crumbled in his hands. If it didn't spring a link where it did, it was only a matter of time before it did somewhere else. It will be interesting to see if our water bill decreases. Our usage always has seemed high. Who knows how long the leak existed before we discovered it while digging.

[jacko]

I watched my folks writing a check for $14,000 for a new roof and thousands more for a furnace. Its helps to have $20,000 plus stashed in a checking at a given time. When they first moved in to their current home nearly a decade a go, their water pipe under the front lawn leading to the road cracked spewing water while away on vacation. It cost $5000 to repair and a thousand more for the water usage bill.

[servingsize]

Prior to 2013 (Cant remember the actual date) FHA stopped PMI at the 20% equity, good payment history, and some other requirement. After that date PMI is required for the full term of the loan unless you finance out of the FHA to a conventional loan or pay the PMI upfront at signing.

[spidge]

Is it possible to pay for an appraisal to determine the value of the house after some time to see if they could meet the 20 percent rule and remove the PMI? Values and rates are going up with opportunity sliding away.

[LadyInTheRed]

Rents have skyrocketed in many places, making ownership more and more attractive. But, when comparing the cost of ownership vs. renting, make sure to include insurance, property taxes and repairs and maintenance. Also, if any of your utilities are included in your rent, don't forget to include those.

As an homeowner, will you be prepared to spend $1,400 when you suddenly need to replace your water main like I had to do last week?

[holycowe]

Including the pmi, we'll be end up paying a little bit cheaper than what we've been paying the last 5 years. Work out for us!

[jacko]

That is typical how one looks at rent versus mortgage with out seeing the big picture. Homes are money pits when you are living on the margin.

[TXskyblue]

Congrats, your in debt again.

Saying that a mortgage is just another debt is ignoring the fact that housing costs money whether one rents or gets a mortgage.

OP could elect to continue to rent and end up paying the same amount or only slightly less than a mortgage would cost.

[holycowe]

Oh ok, that makes sense. I'm thinking about it.
But also, the pricing is still kinda low and keep going up. Rates are going up as well. Another thing to consider

[Drazil65]

Hi, why not just continue to save the whole down payment and not worry about paying the PMI? What is the hurry? Either way (renting or buying) you are paying the bank "rent" until its paid off so why pay the extra in PMI just to "own" your home? Never understood paying for PMI and making the payment much higher than need be, the smarter thing to do is get the whole down payment together and not be a slave to the PMI portion along with the prin., int, taxes and ins. You have to have a down payment anyway so hopefully you can just keep saving towards what you need. Good Luck!

[jacko]

Congrats, your in debt again.